Flexible Spending

What is an FSA/TRA?

Flexible Spending Accounts (FSA) and Transportation Reimbursement Accounts (TRA) allow you to use pre-tax dollars to pay for certain dependent care, health care, and transportation expenses that you would normally pay for with after-tax dollars. This can mean a significant tax savings on qualified expenses.

You have 30 days from the date you begin working to enroll in this plan, or you may enroll during the annual open enrollment period held in December. To continue participation, you must re-enroll each year.

Options

FSA Health Care Account

Defer money pre-tax to pay for eligible medical, dental, and vision out-of-pocket expenses for you and your qualified dependents.

FSA Dependent Care Account

You can defer money pre-tax for dependent care expenses which are necessary to allow you to work.

Transportation Reimbursement Account (TRA)

With a TRA account, you can pay for certain transportation expenses with before-tax dollars. Expenses must be tax-qualified (allowable deductions or credits under current IRS regulations). Allowable deductions include van pool and parking expenses. The deferrable dollar amounts for each option are on the enrollment form.

Important Information

"Use it or lose it"

Under IRS rules, any funds remaining in your FSA at the end of the plan year and grace period are forfeited and not allowed to be refunded by the City of Eugene. (Special rules apply to the TRA program).

Grace Period

Once the plan year ends, you have an additional 2 1/2 months to incur healthcare and dependent care expenses that can be submitted for reimbursement under your prior year's account. This gives you more time to exhaust any funds you may have left at the end of the year. Additional information is available in the FSA Grace Period Q&A.